chargeback

Credit Card Chargeback

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Chargeback credit card folder on the desk

What is a Chargeback credit card?

A credit card chargeback is the payment amount refunded to a debit or credit card when the customer disputes the transaction or returns the item purchased. In case of claiming fraudulent activity, a credit card chargeback reverses the credit transaction of the cardholder. Credit card chargeback is the system to save the credit card holders from the fraud merchants selling dissatisfactory products or services. A cardholder is supposed to resolve the issues with the merchant for their purchase before requesting any credit reversal because an unjustifiable claim not only hampers the business but also makes the cardholder commending criminal fraud. 

 Main reasons for Chargeback by credit card

  • Payment charged for the items never received 
  • Merchant charged the amount twice by mistake
  • Charged Mistakenly because of technical issue
  • Card holder’s card information is not accurate
  • Merchant selling defective items or involved in fraudulent activities, etc. 

Credit card chargeback Merchant Rights

To ensure merchants’ parity, merchants’ substantial rights under the chargeback system allow the merchants to dispute the chargeback whenever possible. 

A disagreement with chargeback allows merchants to show their legal sale, whereas choosing not to combat chargeback tends to increase the merchant’s fraud. 

There are specific procedures and guidelines for the merchants to follow to engage in chargeback representation to dispute a chargeback if the claim is unreasonable or unfair. 

Key Protections for Merchants

The chargeback process is designed with credit card chargeback laws and rights for both consumers and merchants. There are primary credit card chargeback Merchant rights, such as as-. 

  1. Chargebacks cover up the purchase price only. The bank is not entitled to make the full chargeback. The chargeback can be made whole or partial for the transaction, and the bank can also issue multiple partial chargebacks. The amount of chargeback cannot exceed the total amount of the transaction.
  2. The cashback amount cannot be included in the chargeback amount. 
  3. In the product’s late delivery, the customer can demand chargeback only after returning the product. 
  4. In the case of returned items, a customer cannot file for chargeback before fifteen days. The law for a merchant gives the merchant ample time to review the purchase activity and then issue a refund. 
  5. Reason code is another substantial merchant right that needs to be attached with the chargeback notifications to justify the chargeback. With the reason code, a customer may also need to resolve the merchant’s complaint before filing for the chargeback. 
  6. Representment is the merchant right that enables the merchant to dispute a chargeback by providing convincing proofs to the card issuer or the bank.

Credit Card Chargeback Time Limits

To file a chargeback on a transaction, 60 days to 120 days is a standard time limit for a consumer depending upon the credit network and the chargeback reason code. In some cases, it can take up to 6 months to 365 days to resolve the issue. Similarly, depending upon the credit network and the chargeback reason code, Merchants get around 45 days to fight back or clash with the chargeback.  

A chargeback is an integrated and consequential procedure that requires expert guidance to dispute the transaction successfully. Choosing the chargeback management company wisely helps you by offering concrete strategies and solutions to ensure successful chargeback and significantly increase your chances for successful fund recovery.

If you looking for a reliable chargeback credit card assistance or any other help , please contact us by filling out the form or send us an email and we’ll be happy to assist.

Online Payment Processors and Filing a Chargeback

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Online payment processors have dramatically affected transactions but what happens when you need a chargeback?

Imagine you found an online store that sold your favorite pair of name-brand shoes for a fraction of the retail price. You placed an order, made a payment and the countdown for its arrival.

The day finally comes. The shoes are delivered to your door and the excitement has reached its pinnacle. You opened the package to find a counterfeit pair of shoes not worth the box they’re sitting comfortably in. Sorry buddy, you’ve just been scammed!

Unfortunately, this is only one of a handful of circumstances in which a debit or credit card transaction can create problems. Often packages just never show up. Other times consumers are charged twice for the same goods or services. Either way, this is your money and you deserve to get it back as soon as possible. You quickly begin to research the online payment processor and get to work on arranging a chargeback.

What is a Chargeback?

A chargeback is essentially a refund credited to a cardholder’s account after a dispute has been raised and the transaction is retroactively cancelled. Chargebacks can be obtained  for both debit card and credit card transactions and are governed by the card company’s terms of use. 

There are two types of chargebacks.  One is for an authorized transaction  and one for an unauthorized transaction, also known as fraud. It is most important to understand the difference between the two.

There are a number of reasons why  a cardholder can dispute a transaction. For example, a card could be charged by a merchant for items that were never received. A merchant might inadvertently charge a cardholder for a purchase twice. Sometimes, technical issues arise that generate incorrect charges. And then there are cases in which subscriptions and other services are not properly cancelled and the charges continue to appear on your monthly bill.

Attempts to dispute a transaction, especially one that was authorized, can be a difficult and time consuming task. This is due to the necessary evidence you will need to present and the reluctance of banks to consider such cases.

Online Payment Processors and Your Chargeback

Online payment processors have transformed how we process transactions. Their presence in the payment ecosystem has grown exponentially since the outbreak of the COVID-19 pandemic. Amazon Payments, Transferwise, Paypal, and Stripe are just a few of the players that have joined the online payments platform. These companies help millions of consumers transfer funds effortlessly and at minimum cost.

So what are the implications when you transfer money using one of these online payment processors? Unfortunately that’s not very clear. The answers lie hidden in the fine print on each company’s terms and conditions page. The majority of them, however, like traditional banks, do not have the resources, time and expertise to deal with such cases. It doesn’t increase their bottom line and it’s easier for them to just reject your request.
There is an alternative solution that we can recommend. Leaders in fund recovery and alternative dispute resolution, MyChargeBack has a proven track record of delivering results to the thousands of satisfied clients they have assisted over the last few years. If you believe you are the victim of a scam, MyChargeBack will analyze your case and assist you throughout the entire recovery process.